Checklist to Minimize Business Losses

You have upgraded your business activities, which now include a lot of data exchange online. So, you recently met with cyber liability insurance brokers to help you find the right coverage. These efforts are appreciable to keep your business afloat when things go wrong.

But what if you can mitigate the risks and stop the loss from happening? You can indeed do that with a loss prevention checklist.

Here is everything to know about it:

Why Do You Need a Business Loss Prevention Plan?
A loss prevention plan for your business details all the policies and procedures needed to protect your assets.

When you implement it properly, it will not only curb potential losses but will also reduce the chances of taking place. Even if there has been a loss, having a loss prevention plan will ensure minimal business disruption.

To know the specific risk exposure, consider the business type, and formulate a unique plan.

You can adapt the below loss prevention checklist to suit your business:

Fire and Theft
Install insurer-approved security systems like CCTV cameras and smoke or heat detectors. Secure all windows, doors, and cabinets against fire and break-ins. Save all audit trail records and back up all sensitive data onto the cloud and store physical documents in fireproof and cabinets.

Health and Safety
Arrange regular training sessions to spread awareness about workplace safety. Based on your business type and industry, you will have to comply with local, state, and federal guidelines. Identify risky areas and develop expert-reviewed recommendations to fix these issues.

Protect all devices with proper passcodes. Lock and secure computers and laptops when not in use. Get a cyber liability insurance policy to prevent a customer data breach, identity theft, corruption of data, and malware attacks. Speak to cyber liability insurance brokers to understand what kind of protection your business needs.

Business Continuity Plan
Gather the required resources and information to get your business back up after a potential disaster strikes. These include emergency contacts, business insurance documents, etc. You can be prepared for known and unknown outages in the short and long term.

Get the Right Business Insurance Plan
You will need one or more of these commercial insurance policies for your business:

Equipment Breakdown Insurance: Computers, machinery, HVAC systems, and any other equipment that supports your business will have coverage under this plan.

Sewer Backup Insurance: The city sewer system can be damaged, and water can flood into your facility. It is a major financial loss, but the building also becomes a safety and health risk, which sewer backup insurance can cover.

Business Interruption Insurance: Unforeseen events can cause a sudden halt in your daily operations. In that event, business interruption insurance provides the needed funds to resume your activities.

Commercial Property Insurance: Severe weather conditions can damage the building, and business property insurance helps recover your losses. It could be either repair or replacement expenses.

Apart from these, you may need an errors and omissions policy if you provide professional services. For small businesses, content insurance is also crucial to cover office supplies and other items.

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